Ciolacu threatens to resign as prime minister if coalition party PNL does not support fiscal package: I put my mandate on the table and we go to elections if PNL does not understand the stakes of the moment

Prime Minister Marcel Ciolacu announced on Monday that if the PNL does not support the fiscal and state reform package, he will resign as prime minister.

„If the Liberals do not understand the situation and what is at stake, I will put my mandate on the table and we will go to elections. I have my patience too. The game is above Ciolacu and Ciucă’s head, what is being played at this regional moment,” Ciolacu told Aleph News.

„I can’t afford to lose OECD membership. I’m taking the head-to-head measures. Romania can no longer afford this situation,” Ciolacu added.

He added that he is playing „with his mandate on the table”.

The PSD leader also said that „it is possible that I may lose some votes, I will take it on board, I will explain it to the party. But at home, when I look in the mirror, I know that I did the right thing for Romania, the country where my child is growing up”.

He explained that „the biggest challenge is to make the corrections without increasing VAT”.

Background: Prime Minister Marcel Ciolacu told Aleph News on Monday that Romania will have a deficit of 6.2% of GDP this year (well above the assumed target of 4.4% of GDP) and will lose EU funds if it does not take urgent measures. He threatened that if the PNL does not support the package of reforms in the administration and the elimination of tax breaks, he will resign as prime minister and seek early elections.

The head of government announced that he would go to the European Commission to negotiate budget deficit easing.

Marcel Ciolacu also said that the biggest challenge is „to make corrections without increasing VAT”. He added that the tax package will not contain any new taxes, but the elimination of tax facilities, of which he listed tax exemptions, taxes and health contributions.

As for tax increases, he announced possible increases in tobacco excise duties and royalties.

Ciolacu also admitted the error in the construction of the budget for 2023, saying that the budget law estimated a 14% increase in budget revenues compared to last year, but the increase is only 11%. He blamed the drop in consumption and industrial production.